Wynn Resorts Limited being sued for a second time in Massachusetts

In Massachusetts and the former owner of the Suffolk Downs horseracing facility has reportedly again filed a lawsuit against Wynn Resorts Limited over allegations that the American casino operator violated state laws to win the license for its Encore Boston Harbor facility.

According to a Friday report from The Boston Globe newspaper, Sterling Suffolk Racecourse LLC lodged its action in Suffolk Superior Court two weeks ago approximately one year after a federal court dismissed a similar complaint owing to its inability to support racketeering allegations brought against Wynn Resorts Limited.

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The newspaper reported that Sterling Suffolk Racecourse LLC had hoped to win the 2014 license to bring a casino resort to its Suffolk Downs facility and had even inked a preliminary arrangement with the operator behind eastern Connecticut’s giant Mohegan Sun development, Mohegan Gaming and Entertainment, said to be worth around $35 million a year. However, it was eventually pipped by Las Vegas-headquartered Wynn Resorts Limited who went on to open its $2.6 billion Encore Boston Harbor venue last year complete with a 671-room hotel, 15 restaurants and a 210,000 sq ft gaming floor.

Consequential actions:

The intervening years have reportedly seen Sterling Suffolk Racecourse LLC sell off most of its interest in Suffolk Downs to see the Boston-area facility transformed into a simulcasting-only venue. Nevertheless, some of the company’s key investors have since purportedly become involved in a proposal to open a new 223-acre thoroughbred horseracing development some 61 miles away in the small town of Sturbridge.

Serious assertions:

The newspaper reported that the state lawsuit from Sterling Suffolk Racecourse LLC is following a similar line to its federal predecessor in hopes of being able to claw back some of the around $1 billion in earnings it claims to have lost as a result of missing out on the sole Boston-area casino license. The plaintiff’s action is chiefly purportedly arguing that top executives at Wynn Resorts Limited broke the law by withholding information from the Massachusetts Gaming Commission during the bidding process.

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Plaintiff particulars:

The Boston Globe reported that the lawsuit moreover contends that such details included the alleged criminal records of three people involved with FBT Everett Realty, which previously owned the 33-acre parcel of land that now hosts the 27-story Encore Boston Harbor, in addition to supposedly contentious business partners of Wynn Resorts Limited in Macau.

Finally, the legal action furthermore reportedly asserts that Wynn Resorts Limited had attempted to improperly interfere in the business relationship between Sterling Suffolk Racecourse LLC and Mohegan Gaming and Entertainment while covering up sexual misconduct allegations that had been brought against its former Chairman and Chief Executive Officer, Steve Wynn.